TEXAS PACIFIC LAND T

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TEXAS PACIFIC LAND TRUST : Entry into a Material Definitive Agreement, Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K)

06/15/2020 | 09:02am

Item 1.01 Entry into a Material Definitive Agreement



As previously disclosed on March 23, 2020, the trustees (the "Trustees") of
Texas Pacific Land Trust (the "Trust") approved a plan to reorganize (the
"corporate reorganization") into a corporation formed under Delaware law (the
"New Corporation"). In connection with the planned corporate reorganization, on
June 11, 2020, the Trust entered into a Stockholders' Agreement (the
"Stockholders' Agreement") with Horizon Kinetics LLC ("Horizon Kinetics") and
Horizon Kinetics Asset Management LLC (together with Horizon Kinetics and
collectively with their affiliates, "Horizon"), SoftVest Advisors, LLC
("SoftVest Advisors") and SoftVest, L.P. (together with SoftVest Advisors and
collectively with their affiliates, "SoftVest," and together with Horizon, the
"Investor Group") and Mission Advisors, LP ("Mission" and together with the
Investor Group, collectively, the "Stockholders").



The Stockholders' Agreement provides that, effective immediately following the
completion of the corporate reorganization, when sub-share certificate holders
receive common stock (the "Common Stock") in the New Corporation (the
"Distribution Time"), (a) the Board of Directors of the New Corporation (the
"Board") shall be divided into three classes of directors, with directors in
each class serving staggered, three-year terms and (b) (i) Dana F. McGinnis, the
director designated by Mission (the "Mission Designee"), will be appointed to
Class I of the Board (with a term expiring in 2021), (ii) Eric L. Oliver, the
director designated by SoftVest (the "SoftVest Designee"), will be appointed to
Class II of the Board (with a term expiring in 2022) and (iii) Murray Stahl, the
director designated by Horizon (the "Horizon Designee" and together with the
SoftVest Designee and the Mission Designee, the "Stockholder Designees"), will
be appointed to Class III of the Board (with a term expiring in 2023).



The Stockholders' Agreement also provides, among other things, that during the
term of the Stockholders' Agreement (and for so long thereafter as, for any
Stockholder, the terms of the Stockholders' Agreement may survive and continue
to obligate such Stockholder in accordance with the terms of the Stockholders'
Agreement):






? the Stockholders and Stockholder Designees shall be subject to customary
standstill restrictions relating to, among other things, director nominations,
stockholder proposals, proxy contests, other activist campaigns and
limitations on beneficial ownership of the Common Stock (specifically, a cap
of 23.5% of outstanding Common Stock as to Horizon, a cap of 4% of outstanding
Common Stock as to SoftVest and a cap of 5% of outstanding Common Stock as to
Mission);

? the Stockholders will vote all of their shares of Common Stock at each annual
or special meeting of stockholders (or in any action by written consent of
stockholders) of the New Corporation in accordance with the Board's
recommendations, subject to certain exceptions;

? no party will initiate any lawsuit against the other party, subject to certain
exceptions; and

? each Stockholder will be permitted to receive confidential information for as
long as its respective Stockholder Designee serves as a director, subject to
certain restrictions and a confidentiality agreement to be entered into by
each Stockholder and its respective Stockholder Designee, as a condition to
each Stockholder Designee's appointment to the Board.





As a condition to the appointment of the Stockholder Designees to the Board, the
Trust, the Trustees and all Investor Parties (as defined below) shall execute by
the Distribution Time a Mutual General Release Agreement substantially in the
form attached as an exhibit to the previously disclosed Settlement Agreement,
dated July 30, 2019, by and among the Trust and Trustees and Horizon Kinetics,
Horizon Kinetics Asset Management LLC, Murray Stahl, SoftVest, L.P., SoftVest
Advisors
, Eric L. Oliver, ART-FGT Family Partners Limited, Tessler Family
Limited Partnership
and Allan R. Tessler (the "Investor Parties"), as amended,
pursuant to which each party thereto will release each other party thereto from
all claims and liabilities arising prior to the execution of the Stockholders'
Agreement.



As an additional condition to appointment to the Board, the Horizon Designee
will provide an executed conditional resignation letter, addressed to the Board,
to become effective upon the earliest to occur of (a) Horizon ceasing to
beneficially own 10% of the issued and outstanding shares of the Common Stock
(the "Minimum Ownership Event") and (b) the termination of the Stockholders'
Agreement. The SoftVest Designee, as a condition to appointment to the Board,
will provide to the Board an executed conditional resignation letter to become
effective upon the earliest to occur of (a) the Minimum Ownership Event, (b) the
Horizon Designee ceasing to serve on the Board and (c) the termination of the
Stockholders' Agreement.



If, and for so long as, the Distribution Time has not occurred by December 31,
2020
(the "Outside Date"), the Stockholders' Agreement will terminate on the
earliest to occur of (a) the date on which the Trustees take steps to abandon
the Trust's planned corporate reorganization, (b) the date on which a
governmental entity has taken any final action permanently prohibiting the
corporate reorganization and (c) the Outside Date. If the Distribution Time has
occurred by the Outside Date, the Stockholders' Agreement will terminate upon
completion of the 2022 annual meeting of stockholders of the New Corporation;
however, the respective obligations of the Investor Group under the
Stockholders' Agreement will survive until such time as no Horizon Designee or
SoftVest Designee is serving on the Board, and the obligations of Mission under
the Stockholders' Agreement will survive until the Mission Designee is no longer
serving on the Board.



The foregoing summary of the Stockholders' Agreement does not purport to be
complete and is subject to, and qualified in its entirety by, the full text of
the Stockholders' Agreement, which is attached hereto as Exhibit 10.1 and
incorporated herein by reference.






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Item 7.01. Regulation FD Disclosure.



On June 15, 2020, the Trust issued a press release announcing that the New
Corporation
, to be named Texas Pacific Land Corporation, has submitted an
initial draft registration statement on Form 10 to the Securities and Exchange
Commission
for review, on a non-public basis. The press release also announced
that David E. Barry; General Donald G. Cook, USAF (Ret.); Barbara J. Duganier;
Donna E. Epps; Tyler Glover; Dana F. McGinnis; John R. Norris III; Eric L.
Oliver
and Murray Stahl will serve on the Board following the Distribution Time.
The press release additionally referenced the Trust's entry into the
Stockholders' Agreement. A copy of the press release is attached as Exhibit 99.1
hereto and is incorporated herein by reference.



The information included in this Item 7.01 of this Current Report on Form 8-K,
including the attached Exhibit 99.1, shall not be deemed "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated
by reference in any filing under the Securities Act of 1933, as amended, or the
Securities Exchange Act of 1934, as amended, except as shall be expressly set
forth by specific reference in such filing.



Item 9.01. Financial Statements and Exhibits.






(d) Exhibits.



Exhibit
Number Description
10.1 Stockholders' Agreement dated June 11, 2020.
99.1 Press Release of Texas Pacific Land Trust dated June 15, 2020.
104 Cover Page Interactive Data File (embedded within the Incline XBRL document).




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